Emerging bond funds snap 17-wk outflow streak-banks cite EPFR data
LONDON, Sept 27
LONDON, Sept 27 (Reuters) - Emerging bond funds have snapped a four-month streak of outflows while equity funds received new money for the third week in a row over the past week, banks said on Friday, citing data from EPFR Global.
The data, released to clients by the Boston-based fund tracker late on Thursday, reflects improved appetite for emerging assets after the U.S. Federal Reserve's surprise decision on Sept. 18 not to start cutting back its extraordinary money-printing programme.
While the sector's initial strong rally has stalled, EPFR's data shows emerging bond funds received $570 million during the week ending on Sept. 25.
This follows 17 consecutive weeks of outflows that saw a total $25 billion or 10 percent of assets under management flee the sector funds since the end of May.
Local bonds that have borne the brunt of the losses received their first net inflows since the start of June, taking in $204 million. Hard currency debt funds recorded an inflow of $368 million, banks said.
On emerging equities, funds took in $1.88 billion, bringing inflows in the last three weeks to just over $6 billion. The funds had shed $11.5 billion in the five weeks prior to this.
"Inflows to global emerging market equity funds have been accelerating, as investor sentiment is turning, as China hard landing concerns have faded, and export-oriented major EM economies are likely to benefit from a cyclical rebound in global manufacturing," Barclays analysts said.
Year-to-date, however, emerging equity funds have seen $15 billion in redemptions. (Reporting by Sujata Rao)
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